Why should you create an innovative start-up in Tuscany?

Support for young and foreign “start-uppers”

Innovative start-ups are spreading throughout Tuscany. The Tuscan Region reinforces innovation within the Tuscan entrepreneurial system by supporting the creation of new innovative enterprises, with particular attention to young people and foreigners. Thus, the Region intends to help in the start-up phases and promote access to new technological developments, encouraging knowledge transfer and acquisition of highly qualified personnel.  The total number of innovative start-ups in the third semester of 2020 was 12,068, an increase of 572 units (+ 5.0 %) compared to the previous quarter.

Innovative start-up profile

  • More service to businesses than to manufacturers

Approximately 73.6% of innovative start-ups provide services to businesses (in particular, in the sectors of software production and I.T. consulting, R&D activities, and information services), while only 17.7% operate in the manufacturing field (first and foremost, the sectors of machinery manufacturing, production of computers, electronic and optical products). Innovative start-ups are mainly micro-enterprises with an average production value of just over € 201,000.  This is also a consequence of the constant turnover, to which this population is subject, since the “best-performer” companies, those more consolidated in terms of age and turn-over tend to progressively lose the status of innovative start-up.

In many economic sectors, the incidence of innovative start-ups on the total number of new companies appears significant.  Specifically, 8.9 % of all new companies operating in the business services sector are innovative start-ups; the corresponding percentage is 5.8% in the manufacturing sector. In some sectors, as defined by the Ateco 2007 classification, the presence of innovative companies is particularly high: 39.9% of new companies with code C 26 (manufacturing of computers), 40.8 % of those with code J 62 (software production), and more than 69.0% of those with code M 72 (research and development).

  •  The field for young people and foreigners

From a generational point of view, in more than 2,240 innovative start-ups young people (under 35 years of age) 18.6% of the total, predominate.  This figure is three points higher than the percentage among new non-innovative companies (15.6 %). The difference is even greater for companies in which at least one young person is present in the corporate structure: 41.9% of start-ups (5,059 in total), compared to 33.2% of other companies.

Innovative start-ups with predominantly foreign shareholding are 434 (3.6% of the total), a lower percentage than that observed among other new companies (9.2%). On the other hand, innovative start-ups in which at least one non-Italian citizen is present re 13.9% (1,686), a proportion which is fairly similar to corporations (15.1%).

Why choose Tuscany to establish a start-up

Tuscany is a perfect hub of high-quality universities, excellent for spin-off projects with reasonable costs. Cooperation between academia, R&D subsidiaries of multinationals located in Tuscany, and domestic industrial clusters leads to spillover effects that your start-up may easily benefit from.

If your business has to do with manufacturing, you will be able to rely on a wide, flexible, and highly developed network of SMEs (Small Medium Enterprises), which are able to act as high-quality and low-cost suppliers in countless sectors. You will discover how easy it is to grow a start-up in Tuscany with limited investments, since manufacturing facilities are already available at competitive costs.

Fiscal and administrative benefits

In order to encourage the development of this type of company, the legislation has provided a series of fiscal and administrative benefits. These are some of the tax benefits provided:

  • Article 27 of Legislative Decree no. 179/2012 provides  several tax benefits with regard to financial instruments attributed to administrators, employees, and coordinated and continuous collaborators of innovative start-ups;
  • Article 29 of Decree Law n. 179/2012 provides a tax incentive for investments in favour of innovative start-ups.

How to work for equity: an interesting instrument

In particular, it is useful to highlight the possibility of using work for equity. This opportunity involves the remuneration of work through the allocation of quotas, shares, equity financial instruments, or rights to acquire the same, in order to use fewer financial resources and at the same time, obtain greater involvement and loyalty from employees and collaborators.

The greater involvement of employees and collaborators and the harmonizing of collaborators’ and shareholders’ interests allow improved performance for the business, contributing to its long-term economic, patrimonial, and financial growth. Through the incentive and work for equity plans, employment income deriving from assignment of option rights, financial instruments, or any other rights provide allocation of financial instruments or similar rights to directors, employees, or continuous collaborators of the innovative start-up.

These incentives are not subject to any taxation or contributions, nor are the shares, quotas, or participatory financial instruments assigned to third parties for works or services performed by them on behalf of innovative start-ups. Furthermore, they do not contribute to the formation of the assignee’s total income. The intention to adopt work-for-equity incentive schemes must be provided in the statute and in board meetings, which must be deliberated and motivated.

Launching a new start up: how we can help you

MGI Vannucci & Associati boasts many years of qualified experience in the field of national and international consulting. Thanks to our professionalism and experience, we can advise you on how to launch a new start up in Italy. Furthermore, we can provide the best tailor-made solution according to your features. 

Our international unit is made up by young and qualified experts in the tax and corporate consultancy sector, offering consultancy and qualified assistance for the management of companies’ growth, development and reorganization projects.